OM Asset Management agreed to acquire a majority interest in Landmark Partners, a Simsbury, Conn.-based secondary private equity, real estate and real asset investment firm.
Under the terms of the deal, Landmark officials will maintain a 40% ownership stake in the firm, with OMAM owning the remaining 60%.
OMAM will pay approximately $240 million in cash at closing with the potential for an additional payment up to $225 million based on Landmark’s growth through 2018, said OMAM’s 8-K filing with the Securities and Exchange Commission Tuesday.
The transaction is expected to close by Aug. 31.
Landmark will remain operationally autonomous, and the transaction will not result in changes to the firm’s personnel, process or decision authority, said Timothy L. Haviland, president and managing partner at Landmark, in a separate Landmark release.
Francisco L. Borges, managing partner at Landmark, said in the same release that “OMAM provides strategic and operational benefits to Landmark, including global distribution capability and new product development.”
J. Ritchie, OMAM’s chairman, said in the OMAM release: “Landmark fits comprehensively into our stated acquisition strategy, providing a leading platform in an increasingly important asset class, leveraging the strength of our global distribution group, expanding our range of active strategies for investors, and further diversifying our earnings base by broadening our participation in alternative investment strategies.”
Boston-based OMAM, which offers mostly long-only equity strategies, had $218 billion in assets under management as of March 31. Landmark is OMAM’s first venture into private equity, an OMAM spokesman said in an e-mail. As of the same date, Landmark had $15.5 billion of committed capital.
A Landmark spokeswoman could not immediately be reached for additional information.